The WTO's Agreement on Subsidies and Countervailing Measures (SCM Agreement) disciplines the use of trade-distorting subsidies by establishing rules on prohibited subsidies (e.g., export subsidies), actionable subsidies (subject to challenge if causing adverse effects), and non-_____ subsidies (generally permitted).
- actionable
- permitted
- prohibited
- regulated
Answer: actionable
The SCM Agreement balances policy space and trade fairness: it allows subsidies for research, regional development, or environmental adaptation (non-actionable provisions expired but principles remain), while prohibiting export subsidies and allowing challenges to subsidies causing injury to other members' industries.